EASTERN MEDITERRANEAN UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF BANKING AND FINANCE
FALL 2013-2014
COURSE CODE
COURSE TITLE
COURSE TYPE
LECTURER(S)
COURSE COORDINATOR
CREDIT VALUE
PREREQUISITES
COREQUISITES
DURATION OF COURSE
INSTRUCTOR(S) WEB LINKS
TEXTBOOK WEB LINK
OFFICE HOURS
TUTORIAL ASSISTANT(S)
COURSE LEVEL
FINA301
Financial Management
5th semester /3rd year - Undergraduate
Area Core
Assoc. Prof. Dr. Nesrin Özataç (Gr.1), Lec.Bezhan Rustamov(Gr. 2), Lec. Alimshan
Faizulayev(Gr.3).
Assoc. Prof. Dr. Nesrin Özataç (Gr.1)
ECTS VALUE
3 Credit Hrs.
6
None
None
One semester
http://fbemoodle.emu.edu.tr (FINA301)
Visit www.mhhe.com/rwj and select “Essentials of Corporate Finance 6e”
Will be announced
Will be announced
CATALOGUE DESCRIPTION
This course studies the essentials of corporate finance with basic theories. It covers time value of money, financial statement
analysis, valuing stocks and bonds, capital budgeting, capital structure decisions and cost of capital estimation.
AIMS & OBJECTIVES
At the completion of this course, students are expected to have a good understanding of the basic financial ideas and principles
applicable to corporate finance.
GENERAL LEARNING OUTCOMES (COMPETENCES)
On successful completion of this course, all students will have developed knowledge and understanding of:
 Understanding financial statements
 Time value of money
 Valuation of future cash flows
 Valuing stocks and bonds
On successful completion of this course, all students will have developed their skills in:
 Computation of future & present cash flows
 Making capital investment decisions
 Analysis of financial statements
On successful completion of this course, all students will have developed their appreciation of and respect for values and
attitudes regarding the issues of:
 Working with the financial statements
 Evaluating investment projects
RELATIONSHIP WITH OTHER COURSES
It introduces the basics for investments and investment appraisal courses.
LEARNING / TEACHING METHOD
Class sessions will be devoted to the discussion of readings and chapter assignments. In order for everyone to derive the
maximum benefit from the classes, it is important to do the assigned reading before the class. The only way to master this material
is by solving problems. Written work for the course will consist of chapter problems, quizzes, a midterm exam and a final exam.
METHOD OF ASSESSMENT
Midterm Exam:
30%
Final Exam:
40%
Quizzes:
20%
Tutorial:
10%
ATTENDANCE
Attendance is compulsory in accordance with EMU regulations. Students are strongly advised not to miss lecture hours since
success is closely related with attendance. Unexcused absence for more than twelve lecture hours will result in grade "F." If the
unexcused absence is on a continual basis, the ‘NG’ grade will be given. Students are strongly advised not to miss lecture hours
since success is closely related with attendance.
TEXTBOOK
Ross, Stephen A., Westerfield, Radolph W. and Jordan, Bradford D. (2007) 6e, Essentials of Corporate Finance, McGraw-Hill, NY,
USA.
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INDICATIVE BASIC READING LIST
We strongly recommend that you regularly follow daily financial newspapers such as Dünya (in Turkish) and The Wall Street
Journal Europe and / or The Financial Times and other online newspapers.
SEMESTER OFFERRED
2012-2013 Fall Semester
The lecture topics within the semester are as in the following schedule:
WEEKS
CHAPTERS
TOPICS
INTRODUCTION TO FINANCIAL MANAGEMENT
1
1
Ross, et.al., Chp. 1
30.09.2013
Tutorial: Concept Checks and Chapter-end Problems
INTRODUCTION TO FINANCIAL MANAGEMENT
2
1
Ross, et.al., Chp. 1
07.10.2013
Tutorial: Concept Checks and Chapter-end Problems
3
FINANCIAL STATEMENTS, TAXES AND CASH FLOW
2
Ross, et.al., Chp. 2
21.10.2013
Tutorial: Balance sheet, income statement, cash flow applications.
WORKING WITH FINANCIAL STATEMENTS
4
3
Ross, et.al., Chp. 3
28.10.2013
Tutorial: Computation of Financial Ratios
WORKING WITH FINANCIAL STATEMENTS
5
3
Ross, et.al., Chp. 3
04.11.2013
Tutorial: Computation of Financial Ratios
INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY
6
4
Ross, et.al., Chp. 4
11.03.2013
Tutorial: Computation of present and future values.
DISCOUNTED CASH FLOW VALUATION
7
5
Ross, et.al., Chp. 5
18.11.2013
Tutorial: Future value, annuity, loan payment applications. (Financial calculators)
8-9
23 Nov.-04 Dec.
2013
10
09.12.2013
11
16.12.2013
12
23.12.2013
13
30.12.2013
Midterm Examinations
5
6
7
8
14
02.01.201410.01.2014
15
14-29 Jan. 2014
9 & 12
DISCOUNTED CASH FLOW VALUATION
Ross, et.al., Chp. 5
Tutorial: Future value, annuity, loan payment applications. (Financial calculators)
INTEREST RATES AND BOND VALUATION
Ross, et.al., Chp. 6
Tutorial: Computations on bond valuation. (Financial calculators)
EQUITY MARKETS AND STOCK VALUATION
Ross, et.al., Chp.7
Tutorial: Computations on stock valuation. (Financial calculators)
NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA
Ross, et.al., Chp. 8
Tutorial: Applications of investment criteria. (Financial calculators)
MAKING CAPITAL INVESTMENT DECISIONS
Ross, et.al., Chp. 9
Tutorial: Applications on cash flows. (Financial calculators)
COST OF CAPITAL
Ross, et.al., Chp. 12
Tutorial: Applications of WACC.
Final Examination
GOOD LUCK!
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